It's possible to trade profitably on the Forex, the nearly $2 trillion worldwide currency exchange market. But the odds are against you, even more so if you don't prepare and plan your trades. According to a 2014 Bloomberg report, several analyses of retail Forex trading, including one by the National Futures Association (NFA), the industry's regulatory body, concluded that more than two out of three Forex traders lose money.
This suggests that self-education and caution are recommended. Here are some approaches that may improve your odds of taking a profit.
Prepare Before You Begin Trading
Because the Forex market is highly leveraged -- as much as 50 to 1 -- it can have the same appeal as buying a lottery ticket: some small chance of making a killing. This, however, isn't trading; it's gambling, with the odds long against you.
A better way of entering the Forex market is to carefully prepare. Beginning with a practice account is helpful and risk-free. While you're trading in your practice account, read the most frequently recommended Forex trading books, among them
Currency Forecasting: A Guide to Fundamental and Technical Models of Exchange Rate Determination, by Michael R. Rosenberg is short, not too sweet and highly admired introduction to the Forex market.
Forex Strategies: Best Forex Strategies for High Profits and Reduced Risk, by Matthew Maybury is an excellent introduction to Forex trading.
The Little Book of Currency Trading: How to Make Big Profits in the World of Forex, by Kathy Lien is another concise introduction that has stood the test of time.
All three are available on Amazon. Rosenberg's book, unfortunately, is pricey, but it's widely available in public libraries. "Trading in the Zone: Master the Market with Confidence, Discipline and a Winning Attitude," by Mark Douglas is another good book that's available on Amazon, and, again, somewhat pricey, although the Kindle edition is not.
Use the information gained from your reading to plan your trades before plunging in. The more you change your plan, the more you end up in trouble and the less likely that elusive forex profit will end up in your pocket.
Diversify and Limit Your Risks
Two strategies that belong in every trader's arsenal are:
Diversification: Traders who execute many small traders, particularly in different markets where the correlation between markets is low, have a better chance of making a profit. Putting all your money in one big trade is always a bad idea.
Familiarize yourself with ways guaranteeing a profit on an already profitable order, such as a trailing stop, and of limiting losses using stop and limit orders. These strategies and more are covered in the recommended books. Novice traders often make the mistake of concentrating on how to win; it's even more important to understand how to limit your losses.
Be Patient
Forex traders, particularly beginners, are prone to getting nervous if a trade does not go their way immediately, or if the trade goes into a little profit they get itchy to pull the plug and walk away with a small profit that could have been a significant profit with little downside risk using appropriate risk reduction strategies.
In "On Any Given Sunday," Al Pacino reminds us that "football is a game of inches." That's a winning attitude in the Forex market as well. Remember that you are going to win some trades and lose others. Take satisfaction in the accumulation of a few more wins than losses. Over time, that could make you rich!
PERSIAN EGGPLANT SOUP – ASH-E BADEMJAN
Filled with nutrient ingredients and great flavors, this Persian Eggplant Soup - Ash-e Bademjan is a delicious choice for cold days. This vegetarian and gluten free soup is super tasty!
Ingredients
- 4 Chinese Eggplants Peeled and cut into 1" chunks
- 2 tbsp Vegetable or Olive Oil
- 1 Large White Onion Diced
- 4 Garlic Cloves Minced
- 1 tsp Turmeric
- 1 can Chickpeas Drained
- 3/4 cup Green Lentils
- 4-6 cups Water
- 1/2 cup Kashk - Yogurt Whey
Topping:
- 3 tbsp Vegetable or Olive Oil Divided
- 1 Onion Thinly Sliced
- 2 tbsp Dried Mint
- 1/2 tsp Turmeric
- 1/2 cup Kashk- Yogurt Whey
Instructions
- Sprinkle salt over the eggplant chunks and place them in a colander. Place the colander on a large bowl and let the eggplants sit for 20 minutes until they start releasing water. Place the eggplants on a kitchen towel and dry them with another kitchen towel. Set aside.
- Place a heavy bottom pot over medium heat. Pour vegetable or olive oil into the pot and heat.
- Saute onion until golden. Add in garlic and saute for a minute.
- Add in the eggplants and turmeric. Saute for 5 minutes.
- Add in the lentils and stir.
- Add in water and turn the heat to high. Bring the Soup to boil.
- Turn the heat to medium low. Add in chickpeas and cook until the eggplants and lentils are fully cooked.
- Stir in Kashk (Yogurt Whey). Cook for 10 more minutes.
Topping:
- Heat 2 tbsp oil in a pan, saute onion on medium low until soft and golden brown. Transfer them to a plate. Set aside.
- Heat the remaining oil in the same pan. Once hot, add in dried mint and turmeric. Stir and cook for two minutes. Turn the heat off.
- Pour the eggplant soup into bowls. Top with more Kashk (Yogurt Whey), sauteed dried mint and caramelized onion.
- Serve Warm.
Recipe Notes
- You can add a bag (1 lb) of chopped spinach to this recipe. It's optional, but makes it more delicious.
- If using dry chickpeas, soak them in water over night and add them with the lentils. Cooking time may increase.
- You can find Kashk (Yogurt Whey) and dried mint in Persian, Turkish or Middle Eastern Shops.
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